Some economists suggest that banks should be charged premiums for deposit insurance based on their levels of

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Some economists suggest that banks should be charged premiums for deposit insurance based on their levels of capital. Premiums should be higher if capital is lower. What is the rationale for this proposal? Are there any drawbacks to the idea?

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Money Banking and Financial Markets

ISBN: 978-1429244091

2nd edition

Authors: Laurence M. Ball

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Question Posted: Dec 05, 2015 03:44 AM

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Some economists suggest that banks should be charged premiums for deposit insurance based on their levels of

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A high level of bank capital discourages bank owners shareholders from engaging in taking o...View the full answer

Money Banking and Financial Markets

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